Editorial : Central bank recap: on Urjit Patel’s deposition before parliamentary panel

Urjit Patel provides reassuring signals on NPAs and the RBI-Centre détente
There are two important takeaways from the deposition(बयान/उलटना) of Reserve Bank of India Governor Urjit Patel before the Parliamentary

Standing Committee on Finance on Tuesday. First, the banking industry is over the hump on non-performing assets(संपत्तियां) (NPAs), which peaked in the quarter(तिमाही) ending March 2018 at 11.18% of advances. Both gross(कुल/सकल) and net NPAs have registered a decline for two consecutive(लगातार ) quarters — June and September 2018. Crucially(महत्वपूर्ण बात है,), there has been a sharp(तेज ) fall in slippages(गिरावट) (fresh NPAs added to the existing heap) from 7.3% in March 2018 to 3.87% in September. This is certainly(निश्चित रूप से) good news as it indicates(संकेत करना) that the skeletons(रूप-रेख) are mostly out of the cupboard now. Of course, there is still the onerous(कष्टदायक/भारी) task ofresolving(हल करने) the bad loans stock, which is at a little over ₹10 lakh crore now. Profitability(लाभदायक) of banks will continue to remain under stress(तनाव/दबाव) as they provide for the bad loans in their books and/or take hair-cuts on recoveries(वसूलियां) through the insolvency(दिवालियापन/शोधाक्षमता) process. Meanwhile, banks will also have to be wary of their small loans portfolio, especially(विशेष रूप से) those made under the Pradhan Mantri Mudra Yojana, which already add up to ₹6.77 lakh crore. These will need close monitoring(निगरानी/जांच).

The second important aspect of Mr. Patel’s deposition was his spirited(साहसी/तीव्र defence of the RBI’s autonomy(स्वत्व अधिकार). Though he was careful not to say anything that would break the détente forged by the Centre and the central bank at its last board meeting on November 19, he made three forceful(सशक्त/प्रभावी) points: that the RBI’s autonomy is important to protect depositors’ interests; monetary policy has to be the exclusive(विशिष्ट/एकमात्र) domain(अधिकार क्षेत्र) of the RBI; and its reserves are central to maintaining its AAA rating. These statements are probably(शायद/संभवतया) aimed at nipping in the bud any attempts(प्रयास/आज़माना) to change the governance structure of the central bank. After the last board meeting, there have been reports that the Centre is planning to push for board committees to be set up to “assist” the RBI in the discharge of its work. Monetary policy(मौद्रिक नीति) is anyway the preserve(रक्षित) of the Monetary Policy Committee created two years ago under the RBI Act, but there are other equally(समान रूप से/उतना ही) important functions which the Centre may be attempting to control through the board. The issue of autonomy is clearly the gorilla in the room and driving it out is not going to be an easy task. Yet, for the Centre and the RBI there is no alternative(विकल्प) but to continue talking on this subject even while ensuring(सुनिश्चित/सुरक्षित पखना) that it does not cast a shadow over their other respective(संबंधित) roles andresponsibilities(जवाबदेही/उत्तरदायित्व). The issue of RBI autonomy is not something that first emerged(उभरना/प्रकट होना)during this government’s tenure, nor is it likely to be solved in its remaining tenure(कार्यकाल).

Important Vocabulary

1. Deposition(बयान/उलटना)
Synonyms: impeachment, removal, degradation, discharge, dismissal
Antonyms: employment, hiring, retention

2. Crucially(महत्वपूर्ण 
Synonyms: crucially, essentially, exigently, imperatively, necessarily

3. Certainly(निश्चित रूप से)
Synonyms: absolutely, assuredly, exactly, surely, cert
Antonyms: doubtfully, questionably, dubiously, equivocally

4. Profitability(लाभदायक)
Synonyms: advantage, advantageous, advisability, appositeness, aptness
Antonyms: disadvantage

5. Certainly(निश्चित रूप से)
Synonyms: absolutely, assuredly, exactly, surely, cert
Antonyms: doubtfully, questionably, dubiously

6. Insolvency(दिवालियापन/शोधाक्षमता)
Synonyms: bankruptcy, breakdown, deterioration, implosion, inadequacy
Antonyms: accomplishment, achievement, advantage, ascent, benefit

7. Onerous(कष्टदायक/भारी) 
Synonyms: arduous, backbreaking, burdensome, cumbersome, demanding
Antonyms: calm, easy, easy-going, effortless, facile

8. Monitoring(निगरानी/जांच).
Synonyms: audit, check, control, follow, keep an eye on
Antonyms: ignore, neglect, forget

9. Spirited(साहसी/तीव्र 
Synonyms: animated, bold, bright, courageous, energetic
Antonyms: afraid, apathetic, cold, cool, cowardly

10. Forceful(सशक्त/प्रभावी
Synonyms: cogent, commanding, compelling, convincing, dynamic, energetic
Antonyms: apathetic, idle, impotent, inactive, ineffective

11. Domain(अधिकार क्षेत्र) 
Synonyms: dimension, domain, field, sphere, territory
Antonyms: sky

12. Exclusive(विशिष्ट/एकमात्र)
Synonyms: absolute, chic, exclusionary, fashionable, licensed
Antonyms: old-fashioned, open, poor, public, unfashionable

13. Probably(शायद/संभवतया)
Synonyms: apparently, doubtless, no doubt, perhaps, possibly
Antonyms: improbably, uncertain, unlikely

14. Preserve(रक्षित) 
Synonyms: conserve, defend, freeze, keep, perpetuate
Antonyms: abandon, attack, endanger, give up, halt

15. Respective(संबंधित)
Synonyms: various, corresponding, each, individual, own
Antonyms: indefinite

16. Emerged(उभरना/प्रकट होना)
Synonyms: appear, arrive, come up, crop up, develop
Antonyms: abandon, decrease, disappear, drop, fall

17. Tenure(कार्यकाल).
Synonyms: administration, occupation, ownership, regime, reign
Antonyms: misconception, misunderstanding